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Original Research

THE IMPACT OF SELECTED MACROECONOMIC VARIABLES ON THE VOLUME OF CIRCULATION: EVIDENCE FROM EMERGING STOCK EXCHANGE MARKET

MOHAMMAD SULIEMAN MOHAMMAD JARADAT 1, and TAYSEER ALI AL-MOMANI 2.

Vol 17, No 10 ( 2022 )   |  DOI: 10.5281/zenodo.7262678   |   Author Affiliation: Associate Professor, Department of Banking and Financial Sciences, Ajloun National University, Jordan 1; Assistant Professor, Department of Accounting, Ajloun National University, Jordan 2.   |   Licensing: CC 4.0   |   Pg no: 1623-1631   |   To cite: MOHAMMAD SULIEMAN MOHAMMAD JARADAT, and TAYSEER ALI AL-MOMANI. (2022). THE IMPACT OF SELECTED MACROECONOMIC VARIABLES ON THE VOLUME OF CIRCULATION: EVIDENCE FROM EMERGING STOCK EXCHANGE MARKET. 17(10), 1623–1631. https://doi.org/10.5281/zenodo.7262678   |   Published on: 28-10-2022

Abstract

The relationship of macroeconomic factors to the volume of circulation is important and needs to be well understood on the basis that macroeconomic factors primarily affect the exchange of securities. Monetary forces influence discount rates, and macroeconomic factors in financial exchanges become risk factors due to this component. Direct macroeconomic factors, for example, loan costs, trade rates and inflation, are said to influence inventory costs. Changes in macroeconomic factors can clearly affect the exchange of securities and the volume of circulation. Inflation rate, interest rate (IR), and GDP are the three macroeconomic factors. The objective of this examination is to verify the impact of macroeconomic factors on the volume of circulation at Amman stock exchange market in Jordan at the time of of 2008 until 2018. This examination show that the volume of circulation at Amman Stock Exchange is not connected to the macroeconomic variables, the result of t-test and p-value of the macroeconomic variables as independent have no impact on the volume of circulation and all variables are insignificant, this results indicate that the volume of circulation doesn’t influence by the changes of macroeconomics variables.


Keywords

Macroeconomic variables, Inflation rate, interest rate, real GDP.